Premium Supplementation

HRS div. 1, tit. 21, ch. 393, pt. IV

in effect

HRS §393-41 Establishment of premium supplementation trust fund

393-41. Establishment of premium supplementation trust fund There is established in the treasury of the State, separate and apart from all public moneys or funds of the State, a trust fund for premium supplementation which shall be administered exclusively for the purposes of this chapter. All premium supplementations payable under this part shall be paid from the fund. The fund shall consist of: (1) All money appropriated by the State for the purposes of premium supplementation under this part; and (2) All fines and penalties collected pursuant to this chapter. [L 1974, c 210, pt of §1; am L 2013, c 100, §7]

HRS §393-42 Management of the fund

393-42. Management of the fund The director of finance shall be the treasurer and custodian of the premium supplementation fund and shall administer the fund in accordance with the directions of the director of labor and industrial relations. All moneys in the fund shall be held in trust for the purposes of this part only and shall not be expended, released, or appropriated or otherwise disposed of for any other purpose. Moneys in the fund may be deposited in any depositary bank in which general funds of the State may be deposited but such moneys shall not be commingled with other state funds and shall be maintained in separate accounts on the books of the depositary bank. Such moneys shall be secured by the depositary bank to the same extent and in the same manner as required by the general depositary law of the State; and collateral pledged for this purpose shall be kept separate and distinct from any other collateral pledged to secure other funds of the State. The director of finance shall be liable for the performance of the director of finance's duties under this section as provided in chapter 37. [L 1974, c 210, pt of §1; gen ch 1985]

HRS §393-43 Disbursements from the fund

393-43. Disbursements from the fund Expenditures of moneys in the premium supplementation fund shall not be subject to any provisions of law requiring specific appropriations or other formal release by the state officers of money in their custody. All payments from the fund shall be made upon warrants drawn upon the director of finance by the comptroller of the State supported by vouchers approved by the director. [L 1974, c 210, pt of §1]

HRS §393-44 Investment of moneys

393-44. Investment of moneys With the approval of the department the director of finance may, from time to time, invest such moneys in the premium supplementation fund as are in excess of the amount deemed necessary for the payment of benefits for a reasonable future period. Such moneys may be invested in bonds of any political or municipal corporation or subdivision of the State, or any of the outstanding bonds of the State, or invested in bonds or interest-bearing notes or obligations of the State (including state director of finance's warrant notes issued pursuant to chapter 40), or of the United States, or those for which the faith and credit of the United States are pledged for the payment of principal and interest, or in federal land bank bonds or joint stock farm loan bonds. The investments shall at all times be so made that all the assets of the fund shall always be readily convertible into cash when needed for the payment of benefits. The director of finance shall dispose of securities or other properties belonging to the fund only under the direction of the director of labor and industrial relations. [L 1974, c 210, pt of §1]

HRS §393-45 Entitlement to premium supplementation

393-45. Entitlement to premium supplementation (a) An employer who employs less than eight employees entitled to coverage under this chapter and who provides coverage to such employees pursuant to section 393-7(a) shall be entitled to premium supplementation from the fund if the employer's share of the cost of providing such coverage as determined by sections 393-13 and 393-15 exceeds 1.5 per cent of the total wages payable to such employees and if the amount of such excess is greater than five per cent of the employer's income before taxes directly attributable to the business in which such employees are employed. (b) The amount of the supplementation shall be that part of the employer's share of the premium cost which exceeds the limits specified in subsection (a). [L 1974, c 210, pt of §1]

HRS §393-46 Income directly attributable to the business

393-46. Income directly attributable to the business (a) "Income directly attributable to the business" means gross profits from the business minus deductions for: (1) Compensation of officers; (2) Salaries and wages, except wages paid by an individual proprietor to oneself; (3) Repairs; (4) Taxes on business and business property; (5) Business advertising; (6) Amounts contributed to employee benefit plans; (7) Interest on business indebtedness; (8) Rent on business property; and (9) Other expenses necessary for the current conduct of business. (b) Deductions shall not include: (1) Bad debts; (2) Contributions or gifts, other than those listed under subsection (a)(6); (3) Amortization and depreciation; or (4) Losses by fire, storm, casualty, or theft. (c) The director may promulgate rules and regulations necessary to define income directly attributable to business for the purpose of section 393-45. [L 1974, c 210, pt of §1; gen ch 1985]

HRS §393-47 Claim of premium supplementation

393-47. Claim of premium supplementation An employer entitled to premium supplementation shall file a claim therefor in the manner provided by regulation of the director. The employer shall have the burden of proof of establishing the employer's entitlement. L 1974, c 210, pt of §1; gen ch 1985

HRS §393-48 Prepaid health care benefits to be paid from the premium supplementation fund; recovery of benefits

393-48. Prepaid health care benefits to be paid from the premium supplementation fund; recovery of benefits Prepaid health care benefits shall be paid from the premium supplementation fund to an employee who is entitled to receive prepaid health care benefits but cannot receive such benefits because of bankruptcy of the employee's employer or because the employee's employer is not in compliance with this chapter. Benefits paid from the premium supplementation fund to such employee may be recovered from the employee's bankrupt or noncomplying employer. The director shall institute administrative and legal actions as provided in section 393-33 to effect recovery of such benefits. [L 1978, c 3, §1; gen ch 1985]

Source: Hawaii State Legislature (capitol.hawaii.gov), via Internet Archive capturesURL: http://www.capitol.hawaii.gov/hrscurrent/Vol07_Ch0346-0398/HRS0393/HRS_0393-.htmFetched: 11/10/2026